Spicejet turnaround continues, Q2 Profit doubles

spicejtSpiceJet reported a doubling of its net profit to Rs 58.9 Crore for the July-September period as against Rs 29 crore for the same quarter last year.

Operating revenue for the quarter stood at Rs.1,400 crores, a growth of 35%.

Capacity deployed registered a growth of 38% over the same quarter last year.

Despite a sluggish corporate sector, airlines in India are profiting from low fuel costs that has enabled them to offer their services to a larger number of people.

On EBITDAR basis, the Company reported a profit of Rs.333 Crore, a margin of 24%. On EBITDA basis, SpiceJet reported a profit of Rs.127 crore a margin of 9%.

Total cost (CASK) declined 10% over the same quarter last year and average unit fares improved by 5% despite competitive pressures.

“This is the seventh consecutive profitable quarter for SpiceJet after the challenges faced by the Company in December, 2014 and the change in management and control,” the company said.

The airline recorded a passenger load factor of 92.3% in Q2, the highest in the industry.

SpiceJet has recorded the highest passenger load factor in the industry for 19 months in a row and the load factor has been in excess of 90% in every month since April 2015.

“This was the weakest quarter of the year and despite the intense competition in the market, SpiceJet has performed exceptionally well. We continue to focus on responsible and profitable growth,” said Ajay Singh, Chairman & Managing Director, Spicejet Limited. “We have resolved practically all our legacy issues and the stage is set for building up our cash reserves and finalising our long term fleet expansion plans,” he added.

SpiceJet operates 342 average daily flights to 45 destinations, including 39 domestic and 6 international ones. SpiceJet connects its network with a fleet of 31 Boeing 737NG and 17 Bombardier Q-400s. The majority of SpiceJet’s fleet offers SpiceMAX, the most spacious ec